In his inaugural speech as new president of the Chartered Institute of Taxation (CIOT), Glyn Fullelove has sent a clear message to CTAs, “there is no place for any tax advisers who promote avoidance schemes in the CIOT. If there are still members who seek to develop and promote such schemes, I have a simple message – this is not the body for you."
His words reflect the new Professional Conduct in Relation to Taxation (PCRT) guidance which now applies to all the main tax and accounting institutes and is intended to advise and assist members of the relevant bodies in their professional conduct, particularly when it comes to relationships with clients and HMRC.
He continued,
“There is no doubt that trust in the tax profession amongst the general public and politicians of all types was damaged in the aftermath of the financial crisis of 2008. The development of Professional Conduct in Relation to Taxation - to make it clear that members should not create, encourage or promote tax planning arrangements or structures that either set out to achieve results that are contrary to the clear intention of Parliament in enacting relevant legislation or are highly artificial or highly contrived and seek to exploit shortcomings within the relevant legislation - was a necessary step on the road to restoring trust."
“However, and more importantly in many ways, PCRT now has the potential to be one of the strongest positive messages in the CTA brand. Our clients should now be sure that advice received from a CTA is not only of the highest technical standards; it is also advice that will not find them locked into disputes with HMRC that could have at least a severely detrimental impact on their reputation, and, at worst, as we have seen with the recent loan charge legislation, have ruinous financial consequences."
Glen also confirmed that the CIOT will be continuing to develop ADIT, the Advanced Diploma in International Taxation and will be exploring the impact of technology on CTAs.
Peter Rayney becomes the CIOT;s new Deputy President and Susan Ball its new Vice President.
Souce: CIOT Press release